1. State Adoption of Tax Policy: New Data and New Insights.
- Author
-
Hayes, Thomas J. and Dennis, Christopher
- Subjects
- *
TAXATION , *INCOME tax administration & procedure , *INCOME tax , *U.S. states politics & government , *TAX deductions , *TAX research - Abstract
This article examines the factors that influence two important areas of state tax policy—the adoption of an income tax as well as whether a state permits deducting federal income taxes against state individual income taxes. We focus on a factor that has largely been unexplored, the flow of income going to the Top 1% of earners. Using data from two different time periods (1916-1937 and 1960-2003), we find that the share of income received by the richest 1% of taxpayers corresponds with both the likelihood states will adopt an income tax as well as whether states allow deductions of federal income tax against state individual income taxes. [ABSTRACT FROM PUBLISHER]
- Published
- 2014
- Full Text
- View/download PDF